PCTEL INC (PCTI) Stock Fundamental Analysis
NASDAQ:PCTI - Nasdaq - US69325Q1058 - Common Stock - Currency: USD
PCTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. PCTI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PCTI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PCTI was profitable.
PCTI had a positive operating cash flow in the past year.
Of the past 5 years PCTI 4 years were profitable.
PCTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PCTI (5.13%) is better than 76.27% of its industry peers.
PCTI's Return On Equity of 6.31% is fine compared to the rest of the industry. PCTI outperforms 71.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, PCTI is in the better half of the industry, outperforming 62.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCTI is significantly below the industry average of 13.64%.
The 3 year average ROIC (2.82%) for PCTI is below the current ROIC(4.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROIC | 4.25% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PCTI (4.90%) is better than 66.10% of its industry peers.
In the last couple of years the Profit Margin of PCTI has declined.
With a Operating Margin value of 4.37%, PCTI perfoms like the industry average, outperforming 59.32% of the companies in the same industry.
In the last couple of years the Operating Margin of PCTI has grown nicely.
PCTI's Gross Margin of 48.68% is fine compared to the rest of the industry. PCTI outperforms 71.19% of its industry peers.
PCTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% |
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
PCTI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PCTI has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, PCTI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.12 indicates that PCTI is not in any danger for bankruptcy at the moment.
The Altman-Z score of PCTI (6.12) is better than 91.53% of its industry peers.
The Debt to FCF ratio of PCTI is 0.02, which is an excellent value as it means it would take PCTI, only 0.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PCTI (0.02) is better than 88.14% of its industry peers.
PCTI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PCTI (0.00) is better than 74.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.5
WACC8.53%
2.3 Liquidity
PCTI has a Current Ratio of 5.19. This indicates that PCTI is financially healthy and has no problem in meeting its short term obligations.
PCTI has a Current ratio of 5.19. This is amongst the best in the industry. PCTI outperforms 89.83% of its industry peers.
PCTI has a Quick Ratio of 3.85. This indicates that PCTI is financially healthy and has no problem in meeting its short term obligations.
PCTI's Quick ratio of 3.85 is amongst the best of the industry. PCTI outperforms 88.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
The earnings per share for PCTI have decreased by -7.89% in the last year.
PCTI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
PCTI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.72%.
Measured over the past years, PCTI shows a small growth in Revenue. The Revenue has been growing by 1.69% on average per year.
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
3.2 Future
Based on estimates for the next years, PCTI will show a decrease in Earnings Per Share. The EPS will decrease by -7.80% on average per year.
PCTI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.06% yearly.
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.97, the valuation of PCTI can be described as rather expensive.
Based on the Price/Earnings ratio, PCTI is valued a bit cheaper than the industry average as 61.02% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PCTI to the average of the S&P500 Index (26.87), we can say PCTI is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.58, which indicates a rather expensive current valuation of PCTI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PCTI is on the same level as its industry peers.
PCTI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
PCTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PCTI is cheaper than 74.58% of the companies in the same industry.
83.05% of the companies in the same industry are more expensive than PCTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
PCTI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as PCTI's earnings are expected to decrease with -7.80% in the coming years.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y-7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, PCTI has a reasonable but not impressive dividend return.
PCTI's Dividend Yield is rather good when compared to the industry average which is at 3.69. PCTI pays more dividend than 89.83% of the companies in the same industry.
PCTI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of PCTI has a limited annual growth rate of 0.90%.
PCTI has paid a dividend for at least 10 years, which is a reliable track record.
PCTI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.9%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
97.89% of the earnings are spent on dividend by PCTI. This is not a sustainable payout ratio.
The Dividend Rate of PCTI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP97.89%
EPS Next 2Y-7.8%
EPS Next 3YN/A
6.99
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.34%
Inst Owner Change0%
Ins Owners5.47%
Ins Owner Change0%
Market Cap135.26M
Analysts43.33
Price Target7.14 (2.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.22
Dividend Growth(5Y)0.9%
DP97.89%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.38%
Min EPS beat(2)-100%
Max EPS beat(2)128.76%
EPS beat(4)2
Avg EPS beat(4)40.52%
Min EPS beat(4)-100%
Max EPS beat(4)135.29%
EPS beat(8)6
Avg EPS beat(8)75.74%
EPS beat(12)9
Avg EPS beat(12)66.61%
EPS beat(16)11
Avg EPS beat(16)55.36%
Revenue beat(2)0
Avg Revenue beat(2)-9.21%
Min Revenue beat(2)-16.83%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-16.83%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)4
Avg Revenue beat(16)-2.24%
PT rev (1m)0%
PT rev (3m)-22.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)99900%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 | ||
| P/S | 1.56 | ||
| P/FCF | 14.1 | ||
| P/OCF | 12.19 | ||
| P/B | 2.01 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)0.35
EY5.01%
EPS(NY)0.36
Fwd EY5.11%
FCF(TTM)0.5
FCFY7.09%
OCF(TTM)0.57
OCFY8.21%
SpS4.49
BVpS3.48
TBVpS3.14
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROCE | 5.37% | ||
| ROIC | 4.25% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 9.78% | ||
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% | ||
| FCFM | 11.04% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
ROICexc(3y)5.1%
ROICexc(5y)N/A
ROICexgc(3y)5.89%
ROICexgc(5y)N/A
ROCE(3y)3.57%
ROCE(5y)N/A
ROICexcg growth 3Y-1.03%
ROICexcg growth 5Y22.36%
ROICexc growth 3Y-3.65%
ROICexc growth 5Y21.11%
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 59.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 175.36% | ||
| Profit Quality | 225.12% | ||
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 6.12 |
F-Score6
WACC8.53%
ROIC/WACC0.5
Cap/Depr(3y)75.25%
Cap/Depr(5y)71.31%
Cap/Sales(3y)2.92%
Cap/Sales(5y)2.91%
Profit Quality(3y)686.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.49%
EBIT growth 3Y1%
EBIT growth 5Y19.42%
EBIT Next Year-3.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.91%
FCF growth 3Y-27.21%
FCF growth 5Y-11.92%
OCF growth 1Y21.05%
OCF growth 3Y-27.57%
OCF growth 5Y-14.29%